Semi-finished and finished steel prices in India continued to rise amid a shortage of scrap and the resultant increase in input costs. A bullish global steel market also gave prices a lift. Many large-scale mills have their eyes set on the export market considering a lack of steel demand in the domestic market because of lockdowns and stringent movement restrictions in most regions.
In Jalna, the bi-weekly Davis Indexes for rebar and billet rose by Rs1,000/mt ($13.59/mt) to Rs50,500/mt ($686.50/mt) and Rs46,000/mt ex-works, respectively.
The daily Davis Index for rebar in Raipur rose by Rs1,000/mt to Rs49,000/mt while that for billet increased by Rs100/mt to Rs44,200/mt ex-works.
Small-and-medium scale mills in India are adversely affected by the current market dynamics. Lockdowns and the rising steel prices have kept end-users away from purchases. Meanwhile, raw material costs, particularly that of sponge iron and ferrous scrap are firm. Adding to their woes is also a shortage of oxygen, which has forced many to curtail production. Steelmakers are now hoping for pent-up demand after the lockdown, which could help them boost sales and generate liquidity.
In Mumbai, the daily Davis Index for rebar was up by Rs200/mt to Rs51,200/mt, while that for billet settled unchanged at Rs46,000/mt ex-works.
The bi-weekly index for ingot in Ludhiana rose Rs500/mt to Rs46,200/mt ex-works. In Mandi, the daily index for ingot declined by Rs150/mt to Rs46,450/mt del mill. Ingot offers were at Rs46,500-46,600/mt, which mills were unwilling to accept.